Report of the Executive Board
7
Introduction
Activities
Finance Business in
the Netherlands
1987 was characterized by drastic changes for FGH hypotheekbank, which
are of far-reaching significance for the future development of the company.
Following the financial difficulties at the end of 1986, AEGON N. V. made a
public offer for all the outstanding stock of Friesch-Groningsche
Hypotheekbank N.V. in January 1987, and went ahead with this offer in
February. Since then, our institution has been virtually a wholly-owned
subsidiary of AEGON. This change has had major consequences for the way
in which we are able to function in the market. The capital injection by
AEGON meant a considerable improvement in the balance sheet ratios and
the guarantee provided by AEGON has greatly enhanced our position with
regard to the raising of funds on the capital market.
In 1987, the stock of Gemeenschappelijk Eigendom B. V. was transferred by
FGH to AEGON, as were the guarantee commitments vis-ä-vis the
financers of Transveer B. V.in return for which, AEGON acquired an
option to purchase our subsidiaries Van Haften Co and Gebam. AEGON
has let it be known that it wishes to exercise its option to acquire Gebam
in 1988.
As a consequence of the takeover by AEGON, the articles of incorporation
were amended, discontinuing the existing structural regime applicable to the
company. Another important event concerned the reorientation of our
position and the ensuing reorganization. A policy document was drawn up
aimed at enabling FGH to become more flexible and market-oriented in its
operations.
These various changes and adjustments have laid the foundations for a
healthy growth of our company in the years ahead. FGH is a strong and
professional party in the market, and offers a range of quality products
tailored to the needs of the consumer.
Due partly to the adjustments referred to, FGH is now enjoying favorable
financial development. The results for 1987 showed a considerable impro
vement in comparison with 1986, and production increased slightly.
Solvency was also vastly improved.
The core activities of FGH consist of financing real estate in the Netherlands
and the United States. In addition, subsidiaries are engaged in banking and
stockbroking activities and in the management and operation of real estate,
mainly on behalf of third parties.
FGH projects itself in the market as an institution providing services in the
field of real estate finance. The specialized services offered are aimed mainly
at a number of specific market sectors, such as the professional realty market,
where services are offered to investors and real estate developers, the
commercial market and wealthy private individuals. For each target group,
a specific product or package of products is marketed, meeting the require
ments which the clients expect of a specialized company. Thanks to our
flexible approach, the product range is updated in response to market
demand.
